How is Investec supporting mortgage cases in the current climate?

1. What is the outlook for interest rates now, and if the war continues?

The conflict in Iran is having ripple effects far outside the region. Some of these are already felt on fuel costs in the UK, and more will come in the form of higher utility bills from July. This will inevitably delay the return of inflation to target. The Bank of England cannot avert this, but markets now expect the Monetary Policy Committe (MPC) to raise the Bank rate to prevent higher inflation from becoming entrenched via higher wage growth.

How long the Iran conflict will last is highly uncertain and so the disruption and damage to energy supplies is unclear. But if the conflict ends soon, Investec economists think inflation could return to target in H2 2027. They predict the MPC may simply postpone further rate cuts until early 2027 rather than hike the current rate. By the end of 2027, they forecast a Bank rate of 3.00%. If markets’ rate hike expectations are not met, mortgage rates could start to fall again soon. But there are no certainties, and a prolonged conflict could yet persuade the Bank to hike pre-emptively, with an eye to reversing this again as soon as the danger of inflation persistence looks averted.

2. I’m nervous about remortgaging. How is Investec approaching the process?

While the outlook for interest rates may be uncertain, our ability to tailor bespoke mortgages enables us to offer loan sizes and repayment terms that reflect your true financial position. This is especially important for individuals whose wealth or income is affected market volatility or business headwinds caused by geopolitical events.

The role of a private banker is to understand your situation in detail and help explore your options. We recommend speaking to us early so we can provide support.

3. Amid market volatility, how is Investec lending to clients who earn in foreign currency?

Many of our clients earn in foreign currency, such US dollars or Euros, and we’re typically comfortable including some element of foreign currency earnings in affordability calculations, which means you may be able to borrow more than you think you’re able to.

We work closely with foreign exchange specialists in our wider team to understand market moves. They can help our clients monitor the markets and execute trades when agreed rates are met. They can also secure exchange rates in advance, for those seeking more certainty over the value of proceeds, such as ahead of converting funds for a deposit.

4. Some lenders are withdrawing mortgage rates. How can Investec help?

As our mortgages are tailored for each client, we can look carefully at how we structure our lending and repayment terms to support you.

We also consider various assets and income streams in affordability calculations, which means we can continue to offer high LTV loans where appropriate.

5. Can you support clients who need a mortgage quickly?

Yes, we can often support clients who need to complete promptly. In some circumstances, we’ve provided a mortgage deal for a new client within 12 business days. We’re lucky to have integrated mortgage advisers and credit specialists within our team who meet daily to help us work efficiently.

Many of our clients who are looking to move quickly also opt for dual representation – where they use the same legal firm as Investec to optimise the flow of information needed.

Important information:

This article is for general information purposes only. The opinions featured are not the opinions of Investec Bank plc and do not constitute financial or other advice. Contact a professional adviser if you need financial advice. The use of and reliance placed on any of this content is entirely at your own risk. Investec Bank plc residential mortgages are only available to UK residents for residential properties in England or Wales and are subject to eligibility.